How To Build Generational Wealth Using Life Insurance

The Abraham Maslow’s Hierarchy of Needs is a renowned concept. In case it is new to you, it suggests that, humans have a ladder of needs which grows as they move upwards in life. The model ranks basic needs such as food, shelter, and clothing first. Once you achieve this, you need security, stability and safety. Soon after, you start yearning for the fulfilment of social needs like belonging, a family and love. This is followed by the final level of needs where you crave self-esteem, respect and, finally, self-actualization.

While money is not necessarily the only enabler for this progression, we cannot rule out its importance (or that of any currency), as we morph from one level to another, finances linger as a factor for growth.

It is also a known fact that our children can start at a higher level if we are able to ensure that the basic levels are taken care of. Yet, how many of us have thought this far? What are our financial goals? Are they short term or long term? Life is not guaranteed, so how do we ensure that our dependents’ future is secure? Are we big on creating generational wealth? What tools or financial instruments are available to help you structure such an arrangement?

If these questions have stirred something in you, you might wonder where to start. Well, the financial sector is awash with options, but we’ll confine ourselves to what insurance can do to help you build generational wealth and here is how:

1.???Insurance policies have a protection component, which in essence guarantees your dependents a payout of an agreed amount in the unfortunate event of your demise, even before you pay for the full period (i.e before maturity)

2.???By nature, policies have a strict structure that discourages withdrawal of money before the agreed time. One can take a policy for a long time and have it coincide with when they need the wealth passed down by your insurance provider. The dependents would be recorded as beneficiaries.

3.???Due to the investment component in the policy, the money grows, and the returns are added to the policy as bonuses. One can therefore grow their wealth gradually to a sizable fund for the dependents. Some products, such as Twinsave by Geminia Life, give a guaranteed rate of return, thereby protecting your inheritance fund against inflation.

With all these benefits in mind, strive to create wealth for your children and children’s children, now and in the future.

If you have read this article and would wish to set up a life insurance plan or learn more about how we can help set up an insurance plan for you call 0709 551 150 or email [email protected]